As budget preparations begin, Frederick County officials gear up to address a $5.5 million shortfall in the county’s fiscal 2015 budget. As reported by the Frederick News-Post:
The projected deficit came despite the fact that the county’s fiscal 2015 operating revenue is expected to grow by about $10.9 million compared with the prior year. However, these gains were overpowered by spending increases and lower fund balance revenue.
The initial calculations put the fiscal 2015 deficit at about $13 million, but the current plan calls for dipping into reserve funds to close this gap by $7.5 million. About $1 million of this amount would come from a workers’ compensation reserve, and the other $6.5 million is from a fund used to pay for county vehicle maintenance and repair.
County officials will continue to formulate the budget over the next few months. The fiscal 2015 proposed operating budget will be released on April 18, 2014.